The Enforcement Directorate (ED) has arrested Sravanthi Group promoter Dandamudi Venkateswara Rao, also known as D.V. Rao, along with two others in connection with an alleged ₹284 crore money laundering case.
According to the agency, the investigation began after an FIR registered at Sector-40 Police Station in Gurugram alleged that DJW Electric Power Projects Private Limited, controlled by D.V. Rao, had fraudulently availed loans from multiple entities.
The ED alleged that the accused misused the RTGS banking system by mentioning names of actual lenders while providing bank account details of Kolkata-based shell companies in RTGS mandate forms. Investigators said loan repayment funds were diverted to shell entities instead of genuine lenders.
The agency further stated that a parallel probe under the Prevention of Money Laundering Act (PMLA), 2002 involving Sravanthi Energy Private Limited uncovered fraudulent consultancy payments of around ₹75 lakh per month to a shell company that allegedly had no office or employees.
According to ED, more than ₹89 crore was diverted through the arrangement.
Investigators also alleged that the company booked bogus purchases worth over ₹139 crore using fake invoices issued by more than 100 shell entities without any actual supply of goods or services.
The ED said the probe revealed that D.V. Rao had defaulted on massive bank dues, resulting in Sravanthi Energy Private Limited turning into a non-performing asset (NPA). The agency alleged that banks suffered losses exceeding ₹1,500 crore through a One-Time Settlement (OTS) process.
The agency further stated that despite repeated summons, D.V. Rao allegedly remained absconding and failed to cooperate with the investigation, following which a non-bailable warrant was issued against him by the court.
Further investigation in the case is underway.
